Source · National Audit Office

Devolution in England: funding and accountability

This report assesses whether MHCLG is implementing devolved arrangements in a way that supports improved outcomes for local people.

Published: 1 Jul 2026 Recommendations: 11 Type: Value for Money Department: Ministry of Housing, Communities and Local Government
Dept: Ministry of Housing, Communities and Local Government Topics: Local governmentLocal services and housing nao.org.uk →

Recommendations

11 items
No response position recorded.

The indexed recommendations do not yet have a recorded response position. This is separate from evidence of implementation. This report was published 1 July 2026.

Recommendation 1

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 13, 23a

In the short term, MHCLG should: set out further detail, in regulations and statutory guidance, on Local Scrutiny Committees ? this should build on its ongoing work by clarifying membership requirements, powers and ways of working, drawing appropriately on the work of the appointed external auditor to support effective local scrutiny.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 2

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 13, 23b

In the short term, MHCLG should: work with other departments and MSAs to ensure Programme Boards primarily focus on outcomes when assessing MSA performance ? where reporting against outputs is necessary, departments and MSAs should ensure this is proportionate.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 3

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 13, 23c

In the short term, MHCLG should: work with other departments and MSAs to minimise the performance information that MSAs provide to departments outside the formal Programme Board process.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 4

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 24d

Ahead of the next Spending Review period, MHCLG should: work with HM Treasury, other departments and MSAs to ensure that Outcomes Frameworks are consistently finalised and communicated in a more timely manner, harnessing the benefits that a more regular and predictable Spending Review cycle brings

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 5

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 24e

Ahead of the next Spending Review period, MHCLG should: work with other departments and MSAs to ensure that future Outcomes Frameworks place greater emphasis on outcomes rather than programme level outputs.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 6

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 24f

Ahead of the next Spending Review period, MHCLG should: work with HM Treasury to review and update Accounting Officer responsibilities to ensure they operate effectively in the context of Integrated Settlements, including how any changes align with potential fiscal devolution.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 7

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 24g

Ahead of the next Spending Review period, MHCLG should work with HM Treasury to review how the total amount of Integrated Settlement funding is determined, including the potential to move away from top-slicing funding streams and towards a more strategic approach to funding allocation.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 8

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 24h

Ahead of the next Spending Review period, MHCLG should actively manage the risks and opportunities involved in scaling up the system, which will involve more established MSAs as well as newer MSAs receiving an Integrated Settlement.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 9

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 25i

MSAs should ensure they have robust arrangements in place to support effective local accountability and transparency, including drawing appropriately on the work of the appointed external auditor.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 10

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 25j

MSAs should develop well-evidenced material to support timely Outcomes Framework negotiations and requests for additional powers or funding.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 11

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, 25k

MSAs should work with, and learn from, MHCLG and other MSAs to further build their capacity and capability, particularly in relation to fiscal devolution.

Response position: No response position recorded

Delivery: No implementation status recorded